Being a private company helps Dyson to address which aspect of the VRIO framework?

• A. Organization
• B. Imitability
• C. Rarity
• D. Value

Answer: (A)

Verified step by step guidance

1. Understand the VRIO framework, which stands for Value, Rarity, Imitability, and Organization. It is used to analyze a firm's internal resources and capabilities to determine competitive advantage.
2. Identify what each component means: Value refers to whether a resource adds value to the firm; Rarity means the resource is scarce among competitors; Imitability concerns how easily competitors can copy the resource; Organization refers to the firm's ability to exploit the resource effectively.
3. Consider the characteristic of being a private company. This status does not inherently make a resource valuable, rare, or hard to imitate, but it affects how the company is organized and managed.
4. Recognize that being private allows Dyson to structure its management, decision-making processes, and resource allocation without external shareholder pressures, which relates to the Organization aspect of VRIO.
5. Conclude that the aspect of the VRIO framework addressed by being a private company is Organization, as it enables Dyson to effectively organize and leverage its resources for competitive advantage.